MMM Global Ponzi collapses, Sergey Mavrodi in hiding
The financial apocalypse is upon us, MMM Global has collapsed.
BehindMLM called it yesterday, the only reason a Ponzi scheme stops paying out is if there are banking issues or they run out of money.
MMM Global’s use of BitCoin rules out the former, so with investors not paid out for over a month the writing was on the wall.
What we didn’t know was just how soon after publishing our article MMM Global’s collapse would be confirmed.
In a message sent to investor’s backoffices a few hours ago, their worst nightmare has been confirmed.
Referring to the “Republic of BitCoin” Ponzi scheme as an “experiment”, MMM Global blame the ROI percentage for the collapse.
We turned out not to able to pay 100% per month.
We can easily pay 30% per month (and we proved it in practice in many countries), but 100% is too much even for us.
That’s why the RB will be closed down.
Here’s the thing though, whether it’s a 100% ROI, 30% or any other percentage – math doesn’t lie.
MMM Global cannot sustain paying out more than is invested. And as long as affiliate investment is the only source of revenue entering the scheme, any MMM Global scheme will ultimately collapse.
MMM Global’s Ponzi clones offering a lower percentage haven’t “proved” themselves any more than MMM Global did.
They’ll continue to pay ROIs until withdrawals exceed the rate of new investment, and then run out of money all the same. One only needs to look at the collapse of MMM China for evidence of what’s to come.
BehindMLM first warned the public MMM Global was a Ponzi scheme back in December of 2015.
Unfortunately for most MMM Global investors, the collapse is the end of the line. Those unlucky enough to live in countries where MMM Global runs secondary scams, were informed their accounts would be transferred over.
All the participants’ RB-Mavro are transferred to the MMM-structure of the countries which the participants come from.
If there is no MMM-structure working in this country, it will be created within two weeks from the date of this announcement.
All RB-Mavro will be demonstrated as “old” Mavro in PO. Any operations with them are impossible.
Gradually, as your country will be developing, they will be paid back. 10% of the total input of the system will be spent on repaying “old” Mavro.
This practice has already been tested in many countries and proved that it works. It usually takes a half a year to pay back old” Mavro.
At the time of publication the MMM Global website lists localized Ponzi schemes running in India, Indonesia, Malaysia, Hong Kong, Bangladesh, Philippines, Thailand, South Africa, Japan, Eastern Africa and Peru.
As per the MMM Global backoffice message, each of those local scams is about to have a boatload of ROI liability added to it.
Sure, the ROI liability will only be paid back at a rate of 10% of new investment instead of 100%, but do you think these “new” investors are going to reinvest any new funds back into the scheme?
Even at 10% repayment of newly invested funds, the drain on existing localised schemes will be huge.
And existing investors, one would think they’re not complete idiots. It’s highly likely that new and re-investment into the localised MMM Global schemes will grind to a halt. Why are they going to want to contribute to MMM Global’s ROI liabilities for nothing in return?
Just like MMM Global, one by one the local schemes will also collapse.
This news is not very pleasant but there is nothing that can be done about it. It’s not the end of the world. We just have to wait a bit.
We hope for understanding, Administration
“Nothing can be done about it” is the reality now staring untold hundreds of thousands, if not millions of MMM Global investors who have lost money.
Sergey Mavrodi, owner of MMM Global, executed his exit strategy a few weeks ago. On March 20th Mavrodi informed investors there would be no more news updates published to the MMM Global website.
Mavrodi has not been heard from or seen since, and is presumed to be on the run. It’s highly likely he withdrew and/or transferred out as much of the money he stole from investors before fleeing.
Additionally the official MMM Global Facebook page was shut down a few hours ago.
At the time of publication I’m only aware of South Africa investigating MMM Global. If any other regulator has been investigating the scheme and tracking Mavrodi, I’m yet to hear about it.
What this currently means for MMM Global investors is that, as it stands now, the prospect of any financial recovery is looking slim.
As designed, Sergey Mavrodi and his buddies have likely made off with millions of your money – and you’ve got no recourse.
Some of you have direct contact to the person who invited you into MMM Global, so I suppose there’s at least that. You can try demanding they reimburse you for your losses (especially if they were bragging about making lots of money), but I don’t like your chances.
You’re probably going to find they were suckered into re-investing and in reality, didn’t make all that much.
Otherwise as the MMM Global collapse creates shockwaves throughout the Ponzi community, stay tuned for updates…